5 Tips For A Dropshipping Home Business. Don’t miss.

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This post is created with intention to show you what is best practice in Dropshipping Business. It is designed as a tool to see you through your deserved financial goal.

In this post, I will be pointing at 5 Tips you should consider when you finally decide building a dropshipping business.

How lucrative is Dropshipping Business?

Building a dropshipping business is one of the easiest business to start with little investment. The hype surrounding dropship wholesale products and using those products to run a successful business is really on the high, of late.

It’s important to know the following tips which will make your life easier as a home based entrepreneur.

What Dropshipping Business is

A dropshipping business is where you are able to sell merchandise to your customer without holding any inventory. A customer purchases an item from your store at retail price. You then forward the order to your supplier, which you pay the wholesale price.

First we’ll describe what dropshipping is and how it can be useful for a home based business.

Dropshipping uses three entities: You, the Customer, and the Supplier, where you intermediate between your customer and the supplier.

You advertise products that the dropshipper offers, and when customers like to buy the product, they contact you (your store). With the sale, you are able to get the capital (paid by customer), to buy the product and take your share of the profits before the Supplier. Once the  Supplier receives the order, they ship the product directly to your customer and without their brand name on it, with your return address listed. The customer believes you shipped the item and usually have no idea the item was dropshipped.

Dropshipping business
How would you love a business that can give you time for fun

The most important thing is that the customer trusts you enough to come back to your store or your page to make more purchases.

Now that you have a better understanding of what dropshipping is, the tips below will help you avoid some of the pitfalls that usually occur when using dropshipping in your home business.


1. Check the Inventory

My dear friend, it is not enough to assume the dropshipper has the product in stock by mere lifting it from anywhere on the internet to your store. You definitely don’t want to sell a product from a dropshipper only to find out the dropshipper doesn’t have the item in stock. This can constitute a total waste of time as your customer would be counting days already from the date of request, and failure to fulfill order within the specified/promised period would have effect on your integrity. You don’t want to soil it!

You may also like to read Reasons why selling online is for you

This is one of the most common problems in the dropshipping business. Some dropshippers use an available stock field in their product description allowing you to see how many items they have available for immediate delivery.

2. Be Careful With Shipping

Most people new to the dropshipping business don’t think much about shipping costs and how it can cut into their profits. Remember your shipping charges and be sure to pass them on the your customer. Some use a flat rate shipping charge that can cover most and provide a small profit when more shipping charges are collected and not used.


You must be wary of the fact that high or stiff competition in the business has driven so many cravings for free shipping and there are techniques to getting customer’s products to them for free, while still amassing profits. Shipping the products is one of the few challenges of dropshipping business.

3. Dropshipping Charges

Different dropship companies have different fees for dropshipping. Each individual item may have a dropshipping charge even if the order is for more than one item. Others charge a monthly or annual fee. It’s important to know the fees associated with using each Supplier.

I always recommend that people stick to reliable platforms like Oberlo, Alidropship, SaleHoo, CJDropshipping etc for reliable suppliers. These platforms have better guides to dropshipping businesses as well as good suppliers suggests.

4. Saturation

The problem of trend is that, within a short period of time, entrepreneurs experiences saturation. In the case of dropshipping, when choosing a supplier or dropshipper, you don’t want to choose a dropshipper that has a saturated market. The supply and demand principle is still true even in the online world.

If hundreds of people are selling the exact same product as you, you’ll need some sort of incentive for them to buy from you. Such incentive may vary from free shipping to discount coupon and most times, it gets as bad as introducing Pay on Delivery system.

Best thing is to find a niche supplier that can provide unique products at good prices.

5. Beware of the middleman

The reason why you have decided to venture into dropshipping is to be in between your customers and reliable suppliers. So, it is of no advantage falling prey of mediator between you and your supplier? The business of dropshipping is sweeter when you are just three in the game, i.e. Your Customer, You (your store) and the Supplier and not the other way round.

This focuses our attention towards people who claims to be suppliers whereas they are merely middlemen. So beware of this negative factor. It kills the business even faster, with issues ranging from fake identity and lack of proper representation of the real suppliers.

What you should do

I believe that with these 5 tips, you are good to go into the business of dropshipping. Yes, that’s all left to do.

Feel free to comment your views and more tips you think will be beneficial to everyone.

Kindly use the comment box, and please don’t forget to share this post.

See you in our next post.

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